stp Segmentation Target Positioning

2577 words (10 pages) Essay

7th Jun 2017 Marketing Reference this


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A market refers to a set up where two or more parties are involved in transaction of goods and services in exchange of money. The two parties here are known as sellers and buyers.

It is the responsibility of the marketers to create awareness of their products amongst the consumers. It is essential for the individuals to be aware of the brand’s existence. The USPs of the brands must be communicated well to the end-users.

An organization can’t afford to have similar strategies for product promotion amongst all individuals. Not every individual has the same requirement and demand.

The marketers thus came with the concept of STP.

STP stands for:

S – Segmentation

T – Targeting

P – Positioning

The first step in the process of product promotion is Segmentation

The division of a broad market into small segments comprising of individuals who think on the same lines and show inclination towards similar products and brands is called Market Segmentation.

Market Segmentation refers to the process of creation of small groups (segments) within a large market to bring together consumers who have similar requirements, needs and interests.

The individuals in a particular segment respond to similar market fluctuations and require identical products.

In simpler words market segmentation can also be called as Grouping.

Kids form one segment; males can be part of a similar segment while females form another segment. Students belong to a particular segment whereas professionals and office goers can be kept in one segment.


Once the marketer creates different segments within the market, he then devises various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. This process is called targeting. Once market segments are created, organization then targets them.

Targeting is the second stage and is done once the markets have been segmented.

Organizations with the help of various marketing plans and schemes target their products amongst the various segments.

Nokia offers handsets for almost all the segments. They understand their target audience well and each of their handsets fulfils the needs and expectations of the target market.

Tata Motors launched Tata Nano especially for the lower income group.


Positioning is the last stage in the Segmentation Targeting Positioning Cycle.

Once the organization decides on its target market, it strives hard to create an image of its product in the minds of the consumers. The marketers create a first impression of the product in the minds of consumers through positioning.

Positioning helps organizations to create a perception of the products in the minds of target audience.

Ray Ban and Police Sunglasses cater to the premium segment while Vintage or Fastrack sunglasses target the middle income group. Ray Ban sunglasses have no takers amongst the lower income group.

Garnier offers wide range of merchandise for both men and women.

Each of their brands has been targeted well amongst the specific market segments. (Men, women, teenagers as well as older generation)

Men – Sunscreen lotions, Deodorant

Women – Daily skin care products, hair care products

Teenagers – Hair colour products, Garnier Light (Fairness cream)

Older Generation – Cream to fight signs of ageing, wrinkles

A female would never purchase a sunscreen lotion meant for men and vice a versa. That’s brand positioning.

Pond’s Age Miracle

I. Communication Objectives

Pond’s Age Miracle is the best solution for anti-aging for women due to its high effectiveness. Pond’s Age Miracle was already introduced in Vietnamese market but the strategy was not really successful. In this time, the product will be re-launched with a new image. The media objectives will mainly focus on raising the awareness of consumers and creating brand recall for the ones who already used the product before. Specifically, through the broadcast media, Pond’s Age Miracle expects to gain awareness of 80% of the target market and 60% of the target consumers can recall the product after exposing to the advertising media over one year period. These figures are quite high because Pond’s Age Miracle is not a completely new launched product; there are some consumers who already knew about its existence. Moreover, the brand Pond’s has built a good prestige and reputation in consumers’ mind in Vietnamese market. Newspapers, magazines and television are determined as major advertising media due to theirs high coverage

II. Media Objectives

Pond’s Age Miracle sets the objectives for TV ads to reach 50% of the target audience at least three times over the three-month period and the duplicated reach could probably happen because the ad will be placed on more than one TV show. This objective is not high because the media strategy will not only focus on TV but also use other mediums. Moreover, due to the high cost; the usage of TVC will be limited.

III. Target Market and Geographical Coverage

Pond’s Age Miracle targets women who are from 35 to 60 years old; they also have an average income and are classified in upper middle class and upper class (‘Demographics Classifications’, n.d). Their occupations could be housewife, white collar worker, clerk, teacher or anyone else who wants to prevent the signs of aging and has a beautiful, young and smooth skin despite their real age. Most of these targeted women live in urban areas. Therefore, this advertising campaign will focus operating at Hanoi (HN) and Ho Chi Minh City (HCMC), which are the two biggest cities of Vietnam. The figures below demonstrate that the average monthly household income and contribution to total Vietnam GDP of these cities’ residents are quite high, which can meet the criteria of target audience.

IV. Media Strategies

1. Promotional mix tools

To achieve the media objectives and foster the expansion of Pond’s Age Miracle in Vietnamese market, the campaign will apply some promotional mix tools comprising advertising, sales promotion and public relations. With the aim to gain awareness of target consumers, advertising is a very effective way of reaching a wide audience and there petition of advertisements can help to build brand recall and trust of consumers towards the product’s image. Besides, sales promotion is a good tool to generate quick increase in sales in a short term. Sometimes, the consumers could not decide what they really want; thus, when Pond’s Age Miracle offers some kinds of sales promotion, they can probably encourage consumers want to take trial. Finally, public relations (PR) are considered as key strategy of this campaign due to its strong impacts. The activities about PR are expected to catch huge attention of target consumers and spread out more detail about the goodness of Pond’s Age Miracle to them. Although public relation might be costly but the positive effects it can gain are worth doing..

2. Selected Mediums


The advertising will mainly focus on the mediums of traditional media including TV, magazine, in-store and outdoor advertising and new media like websites. The campaign’s period is in one year so the advertising will be spread alternately all over the time, not combining all of those mediums at the same time. Some mediums have high popularity such as TV, magazine and website would be used continuously throughout the period. Because the objective of Pond’s Age Miracle is to reach 50% of target audience at least three times in one quarter; thus, these mediums are necessary to raise the attention and knowledge of consumers about the product. However, the amount and size of advertisements will be variable at different times, depending on the other activities of the campaign. For example, the number of ads would be increased to inform audience when Pond’s Age Miracle has special events or sales promotion. These are the benefits of using TV, magazines and websites.-

TV: reaching large numbers of audience on a national level and we can choose the specific time that most target consumers will watch the TV or specific programs they often prefer. Moreover, TV offers the ability to convey the message with sight, sound and motion which might convince the audiences better. The chart below showed the percentage of media access or device ownership and TV held the highest numbers in all three years from 2006 to 2008.

Magazine: giving more chances to approach the target consumers as we can select the magazines that have appropriate segmentation and familiar target with Pond’s Age Miracle such as women, beauty and fashion. Moreover, the audience may read magazines more than one time so the frequency could be increased.-

Website: the significant rise of Internet users in Vietnam today has made website become an effective tool for advertising. The most popular websites in Vietnam like VnExpress, and are updating about news, fashion trend or entertainment. They could attract million viewers per day including the target market. Moreover, advertising on website is cheap, fast and easy to edit or replace the content.

TV and magazine gained high percentage of media reach compared with other mediums meanwhile the number of Internet increased quickly over three years

Olay Total Effects

Olay total effect

About Olay Total Effects

It all began more than 50 years ago, when pots of pink face cream bearing the name “Oil of Olay” began surfacing on drugstore shelves. Olay founder, Graham Wulff, and his wife, Dinah, understood what women of the 1950s wanted: young-looking, beautiful skin. Wulff’s company was sold and resold over the years, evolving into the Olay brand, which features numerous product lines appealing to targeted demographics with specific skin care needs. One of the line’s newer lines is called “Total Effects,” which targets women who want to reduce the signs of the skin’s aging process.

The Marketing Strategy

When it comes to marketing strategies, Olay’s Total Effects purportedly provide 7 anti-aging therapies in 1 formula. Olay has pinpointed what it considered to be the 7 deadly “sins” of aging skin: Fine lines and wrinkles; lack of moisture; uneven tone; uneven texture; large pores; sagging; and damage due to exposure to free radicals. Among its promises, Total Effects claims its products reduce the appearance of fine lines and large pores, as well as make skin look firmer.

Star Ingredient

One of the main ingredients in Olay’s Total Effects line is niacin amide, a type of Vitamin B. Niacin amide is a water-soluble ingredient and, according to the “British Journal of Dermatology” and “Journal of Cosmetic Dermatology,” applying it topically has shown increased levels of ceramide and free fatty acid in the skin. Additionally, niacin amide has also been proven to prevent the loss of water content. A double-blind study on niacin amide conducted by Procter & Gamble, Olay’s parent company, indicated that it decreased the appearance of wrinkles and skin discoloration, reduced redness and sallowness and improved the skin’s elasticity.

The Products

According to the company’s website, there are some 17 different cleansers, moisturizers and cosmetics in Olay’s Total Effects line that appeal to women with all different skin types. A unique component of the Total Effects line is that it appeals to women with maturing skin who still have problems with breakouts, as evidenced by the line’s anti-blemish products. Total Effects also has specific products that appeal to women afflicted with the aging effects of menopause, fragrance-free products, moisturizers with SPF production, an eye cream/concealer combo and a sunless tanning cream.

The Cost

Comparatively, the cost of Olay’s Total Effects skin care line is considerably less than elite department store brands, such as Dior and Chanel, but still more costly that the average drugstore fare. Total Effects products range in price from around $8 to $23. The cost of Total Effects facial cleansers is more modest and runs from $8 to $10. However, the moisturizers reflect a substantial increase in price, averaging from $18 to $20.

Total Effects Efficacy

According to the American Association of Dermatology (AAD), intrinsic aging–the natural process of aging that results in facial lines, transparent skin and loss of elasticity–cannot be fixed with the aid of a jar. Those who want a permanent fix–rather than just the appearance of better skin–may want to consider surgical fat transfer or botulinum injections to reduce wrinkles or use a prescription topical cream approved by the U.S. Food and Drug Administration. Laser resurfacing and chemical peels can even out skin tone. The AAD does recommend that anyone concerned with aging use a sunscreen with Sun Protection Factor (SPF) or 15 or greater before going outdoors, regardless of the season, and certainly some Total Effects products meet this criteria. However, when it comes to selecting a promising anti-aging treatment, such as Olay’s Total Effects, consult your dermatologist and to see if the product line will meet your long-term expectations.

Parent Company-

Procter and Gamble


Personal Care brands – Skin care



Tagline/ Slogan-

Fight 7 signs of aging


1 / 4Olay Total Effects

Keeps the skin younger with aging of the body



Personal care – anti aging cream

Target Group-

Middle aged and younger women above 25 years of age of higher middle class


Prevents aging as well as makes one look younger than her age

SWOT Analysis-

Strength –

2 / 4Olay Total Effects

1. Strong and effective marketing and promotion

2. Support of P&G

3. Effective in preventing anti aging and removing dark spots etc

4. Widely spread distribution network


1. High price limits the target customers

2. Confusion over the original olay in different markets

3. Brand image less established than other products like Pond’s


1. Explore international market

2. Product development and innovation

3. Expanding online presence


1. Presence of established brand names and stronger companies

2. Threat of new entrants

3. Difficult to change the brand loyalty of customers towards other brands


3 / 4Olay Total Effects


1. Pond’s

2. Garnier

3. Lakme

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